Republic Acts

REPUBLIC ACTS

REPUBLIC ACT NO. 8108 - AN ACT
GRANTING THE MARECO BROADCASTING NETWORK, INC., A FRANCHISE TO
CONSTRUCT, MAINTAIN AND OPERATE RADIO BROADCASTING AND TELEVISION
STATIONS IN THE PHILIPPINES.

Section
1. Nature and Scope of Franchise. – Subject to the
provisions of the Constitution and applicable laws, rules and
regulations, there is hereby granted to the Mareco Broadcasting
Network, Inc., hereunder referred to as grantee, its successors or
assigns, a franchise to construct, install, operate and maintain for
commercial purposes and in the public interest, radio and/or television
broadcasting stations in the Philippines with the corresponding
technological auxiliaries or facilities, special broadcast, other
program and distribution services and relay stations, and to install
radio communication facilities for the grantee's private use in its
broadcast services.

Sec. 2. Manner of Operation of Stations or
Facilities. – The stations or facilities of the grantee shall be
constructed and operated in a manner as will at most result only in the
minimum interference on the wavelengths or frequencies of the other
existing station or stations which may be established by law, without
in any way diminishing its own right to use its selected wavelengths or
frequencies and the quality of transmission or reception thereon as
should maximize rendition of the grantee's services and/or the
availability thereof.

Sec. 3. Prior Approval of the National
Telecommunications Commission. – The grantee shall secure from the
National Telecommunications Commission the appropriate permit and
licenses for its stations and shall not use any frequency in the radio
spectrum without having been authorized by the Commission. The
Commission, however, shall not unreasonably withhold or delay the grant
of any such authority.

Sec. 4. Responsibility to the Public. – The grantee
shall provide adequate public service time to enable the government,
through the said broadcasting stations, to reach the population on
important public issues; provide at all times sound and balanced
programming; assist in the functions of public information and
education; conform to the ethics of honest enterprise; and not use its
stations for the broadcasting of obscene and indecent language, speech,
act, scene, or for the dissemination of deliberately false information
or willful misrepresentation to the detriment of the public interest,
or to incite, encourage, or assist in subversive or treasonable acts.

Sec. 5. Right of Government. – A special right is
hereby reserved to the President of the Philippines, in times of
rebellion, public peril, calamity, emergency, disaster or disturbance
of peace and order, to temporarily take over and operate the station of
the grantee, to temporarily suspend the operation of any station in the
interest of public safety, security and public welfare, or to authorize
the temporary use and operation thereof by any agency of the
government, upon due compensation to the grantee for the use of said
stations during the period when they shall be so operated.

Sec. 6. Term of Franchise. – This franchise shall be
for a term of twenty-five (25) years from the date of approval of this
Act, unless sooner revoked or cancelled. In the event the grantee fails
to operate continuously for two (2) years, this franchise shall be
deemed ipso facto revoked.

Sec. 7. Acceptance and Compliance. – Acceptance of
this franchise shall be given in writing sixty (60) days after approval
of this Act. Upon giving such acceptance, the grantee shall exercise
the privileges granted under this Act. Non-acceptance shall render the
franchise void.

Sec. 8. Tax Provisions. – The grantee, its successors
or assigns shall be liable to pay the same taxes on their real estate,
buildings and personal property, exclusive of this franchise, as other
persons or corporations are now or hereafter may be required by law to
pay. In addition thereto, the grantee, its successors or assigns shall
pay a franchise tax equivalent to three percent (3%) of all gross
receipts of the radio business transacted under this franchise by the
grantee, its successors or assigns: provided, that the grantee, its
successors or assigns shall continue to be liable for income taxes
payable under Title II of the National Internal Revenue Code pursuant
to Sec. 2 of Executive Order No. 72 unless the latter enactment is
amended or repealed, in which case the amendment or repeal shall be
applicable thereto.

The grantee shall file the return with and pay the tax due thereon to
the Commissioner of Internal Revenue of his duly authorized
representatives in accordance with the National Internal Revenue Code
and the return shall be subject to audit by the Bureau of Internal
Revenue.

Sec. 9. Self-regulation by and Undertaking of
Grantee. – The grantee shall not require any previous censorship of
speech, play, act, scene or other matter to be broadcast and/or
telecast from its stations: provided, that the grantee, during any
broadcast and telecast shall cut off from the air the speech, play,
act, scene or other matter being broadcast if the tendency thereof is
to propose and/or incite treason, rebellion or sedition; or the
language used therein or the theme thereof is indecent or immoral; and
willful failure to do so shall constitute a valid cause for the
cancellation of this franchise.

Sec. 10. Warranty if Favor of National and Local Government. –
The grantee shall hold the national, provincial and municipal
governments of the Philippines harmless from all claims, accounts
demands or actions arising out of accidents or injuries, whether to
property or to persons, caused by the construction or operation of the
stations of the grantee.

Sec. 11. Sale, Lease, Transfer, Usufruct, Etc. – The grantee
shall not lease, transfer, grant the usufruct of, sell or assign this
franchise nor the right and privileges acquired there under to any
person, firm, company, corporation or other commercial or legal entity,
nor shall the controlling interest of the grantee be transferred to any
such private person, firm, company, corporation or entity without the
prior approval of the Congress of the Philippines. Any person or entity
to which this franchise is sold, transferred or assigned shall be
subject to all the same conditions, terms, restrictions and limitations
of this Act.

Sec. 12. General Broadcast Policy Law. – The grantee
shall comply with a general broadcast policy law which the Congress of
the Philippines may hereafter enact.

Sec. 13. Separability Clause. – If any of the
sections or provisions of this Act is held invalid, all the other
provisions not affected thereby shall remain valid.

Sec. 14. Repealability and Non-exclusivity Clause. –
This franchise shall be subject to amendment, alteration, or repeal by
the Congress of the Philippines when the public interest so requires
and shall not be interpreted as an exclusive grant of the privileges
herein provided for.

Sec. 15. Effectivity. – This Act shall take effect
upon its approval.

(Note: Lapsed into law on July
9, 1995, without the signature of the President, in accordance with
Article VI, Sec. 27 (1) of the Constitution.)